Nov. 12, 2013

Written by

Free Press Staff Writer

State authorities have investigated 21 cases of possible time-sheet fraud by employees since a Vermont State Police patrol commander was caught padding his hours in July 2012, according to the Department of Human Resources.

Four time-sheet cases have been referred to law enforcement for possible criminal investigation, said Steve Collier, the Human Resources legal counsel.

Collier said the 21 cases involve 20 employees, but he was unable to specify any names, including the four sent for criminal investigations.

The state has about 8,000 employees, including 7,000 permanent workers.

A more than two-week investigation by the Burlington Free Press has determined one time-sheet case involves longtime Liquor Control Investigator Matt Gonyo of Chittenden County. The former Grand Isle County deputy sheriff has spent 13 of his 15 years in law enforcement with Liquor Control.

Gonyo initially asked the Free Press how the newspaper became aware of his case. He later said his investigation is related to a whistle-blowing complaint he filed with Human Resources and with the office of Auditor Doug Hoffer. He declined to say what the complaint was about.

Gonyo referred further questions to the Vermont State Employees Association. Spokesman Doug Gibson said the union would like to speak but is waiting for Human Resources to complete an investigation.

Hoffer acknowledged Gonyo spoke to him about the operation of the Department of Liquor Control, but it is up to Human Resources to initially address the issues.

Vermont State Police Capt. J.P. Sinclair, who recently was named the department’s chief criminal investigator, said Tuesday he was aware of two time-sheet fraud complaints. One proved unfounded, and the other, which remains unresolved, involves Gonyo, Sinclair said.

“It kicked off last summer, and the whole case is done and up to the Chittenden County State’s Attorney’s Office,” Sinclair said, referring to the Gonyo case. Sinclair said he spoke with the prosecutor’s office Tuesday, and no decision had been made on what, if anything, would be done.

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State’s Attorney T.J. Donovan would offer no confirmation that Gonyo is a target but said he was aware of a criminal investigation that remains under review by his office.

“I have received a report from the Vermont State Police concerning possible fraud by a state employee,” Donovan said Tuesday. When asked the nature of the investigation, he responded “time-card fraud.”

Donovan prosecuted former state police Sgt. Jim Deeghan, a longtime patrol commander in Chittenden and Lamoille counties. Deeghan bilked taxpayers out of about $213,000 from 2006-12 by filing false time-sheets, which also helped fatten his proposed pension. He was convicted, sentenced to two years in prison, served nine months and was released last month. He must make restitution by signing over his state pension.

William Goggins, the chief of education, licensing and enforcement for the Liquor Control Department, told the Free Press he was unaware of any investigation about Gonyo or any member in his department.

Liquor Commissioner Michael J. Hogan said he believes he is unable to discuss cases involving his department because it would involve a personnel action.

“We are the fact-finders,” Canales told the Free Press. He said a report goes back to the department of the employee.

The case did come to the attention of the Vermont State Police, who assigned Detective Sgt. Dan Elliot of the New Haven barracks. Attempts to reach Elliot were unsuccessful.

The Gonyo investigation

The Free Press investigation determined the state inquiry centers on Gonyo’s time sheet from when he was part of the START Program, an anti-alcohol initiative.

The Stop Teen Alcohol Risk Team (START) program operated in several counties through June 30 under a grant from the state Health Department.

Shelburne Police Sgt. Allen Fortin, the START coordinator in Chittenden County, told the Free Press last week that he received a call from a Human Resources Department investigator asking about the work details of the program.

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He estimated the call came in July, because the fiscal year had ended, and he was preparing his annual report for the Health Department.

Fortin said he was told little, but it was evident the state investigation focused on Gonyo, because he was the only state employee involved in the START detail.

Gonyo focused on coordinating extra downtown patrols, Fortin said, and a second officer from Hinesburg helped oversee patrols for high-school proms and other parties.

Gonyo was scheduled to work June 21 and June 28, Fortin said, and normally would work a seven-hour shift at an overtime rate.

Part-time Shelburne Officer Josh Otey, who also works full time for Bristol police, was the only other officer scheduled to work the START detail on June 28, Fortin said.

“I didn’t see him,” Otey told the Free Press when asked if he saw Gonyo that night.

Otey said Canales, the Human Resources investigator, interviewed him by phone about what the officer saw the night he worked the START detail.

Otey told the Free Press he arrived a little early for the roll call at Burlington police headquarters that evening, and a commander paired him immediately with a city officer, and they went out to work.

Otey said he did not see anybody else working the START detail. He said it was possible Gonyo could have started later and been working elsewhere in the city with another Burlington officer.

“I did what I was supposed to do,” Otey said.

The other cases

Vermont Public Safety Commissioner Keith Flynn said he was disappointed to learn there had been 21 time sheet referrals since the Deeghan case.

He said the state employees have a long history of hard dedicated work. With 8,000 employees, a few may slip and that is disappointing to Flynn, Vermont’s top cop.

“I’m always surprised that a public servant might have decided to falsify something,” Flynn said Tuesday.

“I do think it is important, when there is an allegation, that it is investigated and when appropriate that it is referred to a prosecutor to make the call,” said Flynn, a former Orleans County state’s attorney.

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Deeghan claimed hours never worked, investigations never conducted and court appearances that never happened. He also created nearly 1,000 bogus traffic tickets to try to show he was working.

In the case’s aftermath, the state police increased oversight, including accountability for overtime, added extra supervision on night shift and worked to prevent members from approving their own time sheets.

Gov. Peter Shumlin helped push through legislation earlier this year that will allow the state to seize pensions of government employees involved in theft, embezzlement, fraud and other crimes.

Attempts to reach Shumlin on Tuesday were unsuccessful.

Shumlin was upset during a July 11, 2012 news conference that followed a Free Press report about Deeghan’s suspension and a sweeping investigation into state police time cards.

"This administration will not tolerate taxpayers being robbed from in any way, shape or form," Shumlin said.

State Police Director Tom L’Esperance said at the news conference that other troopers felt betrayed by Deeghan's alleged actions.

"This is a case of a public servant who was entrusted with a job to do," L'Esperance said.

"He betrayed his badge, his core values, and across the state this will have a shock wave among state police members that will have a long-lasting effect."

An independent audit of the Vermont Public Safety Department released in February 2013 showed the payroll system was well-managed for the most part and no other evidence of wrong doing besides Deeghan.